Binary CFDs are a simple and exciting way to capitalize on short-term movements of the market with the added benefit of limited risk.
How it works
A binary gives you the option to take a view on whether a specific outcome will or will not occur. For example, will the South Africa 40 index close up on the day?
- If the answer is 'yes', the binary settles at 100
- If the answer is 'no', the binary settles at 0
Binaries are an over-the-counter (OTC) product of IG Markets with the price influenced by several factors – including the time to expiry and the underlying market price.
The price given is a reflection of the likelihood of the statement being true. The closer the bid/offer values move towards zero, the more likely the chance of the statement being false and the closer the bid/offer values move towards 100, the greater the chance of the statement being true.
Binary trading offers the following benefits:
Significant short-term profit potential
Binaries allow you to capitalize on short-term movement, especially when the market is influenced by news.
Limited risk
You cannot lose more than your initial margin requirement.
Uninterrupted dealing prices
We quote a continuous tradeable price up until 10 minutes before market settlement. This means that you can close your positions without having to wait for the binary to expire.
Go long or short
You can buy or sell any binary that we quote.
Commission-free
The only charge is the dealing spread.
A Binary CFD is a leveraged product and can result in loss. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.
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